Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, musical instrument maker Steinway Musical Instruments (NYSE: LVB ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Steinway's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Waltham, Mass. (1993)|
|Market Cap||$309.8 million|
|Trailing-12-Month Revenue||$348.0 million|
|Management||Chairman/CEO Michael Sweeney
CFO Dennis Hanson
|Return on Equity (average, past 3 years)||2.8%|
|Cash/Debt||$40.5 million / $71.5 million|
|Competitors||Kawai Musical Instruments Manufacturing
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 66 of the members who have rated Steinway believe the stock will outperform the S&P 500 going forward.
Steinway Musical Instruments has many of the attractive elements I look for in an investment: a dominant market position in its core business, solid downside protection, hidden asset value, smart and incentivized insiders, and several foreseeable catalysts all rolled into a small-cap, underfollowed stock. I believe this $25 stock is worth ~$47 (88% upside) and that there are several probable catalysts (as early as Q3 this year) that could drive the share price closer to my estimate of intrinsic value.
If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Steinway may not be your top choice.
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